Secretary of State for Transport (): It is vital that we
take the necessary steps to protect the services which our
critical workers, such as NHS staff, rely on - both
in London and all across the country.
So far, we have invested billions into maintaining essential
services across rail, buses, trams and ferries outside London,
including £30 million over 12 weeks for light rail services in
Sheffield, Manchester, West Midlands, Tyne and Wear, and
Nottingham; almost £400 million to protect vital bus routes and
temporarily suspended rail operators’ franchise agreements to
transfer all revenue and cost risk to government so that services
continue to run.
This is alongside our wider agenda to level up transport networks
across the whole country, including £5 billion for buses and
bikes announced back in February (2020), £4.2 billion for local
transport settlements for 8 Mayoral Combined Authorities subject
to negotiations, a £1.7 billion Transport
Infrastructure Investment Fund to improve roads, repair bridges
and fill millions of potholes; and the decision
by government to take over
the Northern network to protect services, drive up performance
and rebuild passenger confidence.
We will continue to work with metro mayors, local authorities and
transport operators all across the country to ensure that public
transport is available for those who need it, including any ramp
up in services required as people slowly start to return to work.
In order to keep vital public transport services running in
London and further ramp up services to support social distancing,
the government agreed on Thursday 14 May a package of support for
Transport for London (TfL). It comprises £1.095
billion of new grant and a further loan facility of £505 million.
The support can be increased by a further £300 million of grant
and loan if revenue loss is higher than forecast at this time.
The settlement for TfL was needed for two
reasons. Most important is the significant fall in revenue caused
by COVID-19. However, an important secondary factor was the
pre-existing poor condition of TfL’s financial position as a
result of decisions made over the last 4 years. Combined with
significant cost increases and delays to Crossrail, this
left TfL in
serious financial difficulty even before the public health
emergency.
It’s important to note that around half of all bus and rail
journeys in England are made on its services and that London is
by far the most public transport-dependent place in the UK.
Almost half of all Londoners, more in inner London, do not have
access to cars. London’s roads are the most congested in the UK;
even with reduced passenger numbers and
capacity, TfL’s
services are still essential to allow critical workers to travel
and the city to operate.
Unlike local transport authorities in other towns and cities
across England, TfL is responsible for
London’s bus network, principal road routes, various rail
networks including the London Underground, London Overground,
Docklands Light Railway and TfL Rail, as well as trams,
cycling provision, and river services. To protect these services,
It is important therefore that the rescue package takes steps to
put TfL back
on a sustainable footing while ensuring fairness for the wider
British taxpayer. As result, the mayor intends to adhere to the
proposal in TfL’s
own business plan that fares should increase by RPI plus 1% on
all modes in January.
We have also set a number of other conditions, including:
restoring services to 100% of pre-COVID levels as soon as
possible; requiring TfL to collect fares on buses
while ensuring driver safety, which it had stopped doing during
the crisis; easing congestion by the temporary suspension of free
travel for over-60s in the morning peak and temporarily
suspending free travel for under-18s all day. Disabled people
will still be able to make use of their concession passes all
day, and special arrangements will be made for those children who
qualify for free travel to schools.
These conditions are needed to avoid crowding and reduce the
exposure of vulnerable groups.The mayor has subsequently
announced that the Congestion Charge will increase to £15, with
extended hours of operation and has withdrawn the residents’
discount for new applications.
The Congestion Charge will continue to have exemptions
for NHS and care workers and
Blue badge holders. Local residents will continue to receive
discounts.
To help avoid such drastic action in the future there will be an
immediate and broad ranging government-led review
of TfL’s future
financial position and structure.
The decision to offer support was not taken lightly, but reflects
the exceptional circumstances the country finds itself in. I
consider it vital to keep services in London running to the
maximum levels possible to allow safe transport of passengers.
Our messaging remains that people should avoid using public
transport and work from home wherever possible, but as measures
are slowly lifted it is vital that Londoners who need to
use TfLservices
feel safe and secure.
This deal will encourage help protect those who need to use
public transport and help us move towards greener and healthier
walking and cycling options. Importantly, it will also provide
certainty and stability for London’s transport services in the
future.
